Audio-equipment maker Harman International Industries Inc. said Thursday it would be acquired by Kohlberg Kravis Roberts & Co. LP and Goldman Sachs Group Inc.'s private equity arm for about $8 billion.

Harman stockholders would receive $120 in cash for each share of Harman they own. That marks a 17 percent premium over Harman's closing stock price Wednesday.

Shares of Harman (up $20.28 to $122.84, Charts) surged 19.3 percent in early morning trading on the New York Stock Exchange.

As an alternative to receiving cash, Harman's stockholders could elect to exchange some or all of their Harman stock for shares in a new corporation formed by KKR and GS Capital Partners.

Shareholders of Harman would own a maximum of 27 percent of that new corporation. The stock of the new corporation will not be listed on any exchange, but will be registered with U.S. Securities and Exchange Commission.

Harman may solicit other bids for a 50-day period ending on June 15.

Earlier, Harman said its third-quarter profit rose, helped by higher sales at its automotive segment. Quarterly net income totaled $71.0 million, or $1.07 a share, compared with $64.0 million, or 94 cents a share, a year earlier. Net sales rose 10 percent to $882.8 million.

Analysts were expecting the company to earn $1.09 a share, before items, on net sales of $882.5 million, according to Reuters Estimates.

Bank of America (down $0.26 to $50.98,) Securities LLC, Credit Suisse (down $0.16 to $78.87, ), Goldman Sachs (down $0.19 to $225.41, Charts, Fortune 500) and Lehman Brothers (down $0.29 to $76.89, Charts, Fortune 500) have committed debt financing for the deal and served as financial advisers to KKR and GSCP.

Bear Stearns & Co. Inc. was Harman's financial adviser.